BBVA Encourages Clients to Allocate 3-7% of Portfolios to Cryptocurrencies

BBVA, Spain’s second-largest bank, has taken a significant step by encouraging its wealthy clients to allocate a portion of their portfolios to cryptocurrencies. This move signals the bank's growing confidence in digital assets, particularly Bitcoin and Ethereum. The bank recommends that clients invest between 3% and 7% of their portfolios in cryptocurrencies, with the exact percentage depending on the client's risk appetite. This advice comes from Philippe Meyer, leader at BBVA Switzerland Digital and Blockchain Solutions, who made these remarks at the DigiAssets conference in London.

Meyer highlighted that BBVA has been recommending Bitcoin investments since last year and has since increased the recommended portfolio exposure for clients with a higher risk appetite. He noted that even a small percentage of Bitcoin in a balanced portfolio can substantially increase returns without adding excessive risk. This strategy aligns with BBVA's broader approach to wealth management, integrating crypto investing into its overall strategy.

BBVA's approach contrasts with the more conservative stance of many European banks, which have largely shunned cryptocurrencies. Despite the risks, BBVA sees digital assets as a valuable tool for long-term investment planning. The Spanish financial regulator (CNMV) approved crypto trading services offered by BBVA earlier this year, making it the first major Spanish bank to legally offer such services to customers. Initially, the services were available to a few small-scale customers, but the bank aims to expand them to retail customers.

The bank’s digital platform will soon allow users to buy and sell Bitcoin and Ethereum, with plans to add more cryptocurrencies in the future. This expansion is part of BBVA's efforts to make crypto investing more accessible through its existing tools. The response from clients has been positive, with many high-net-worth individuals viewing cryptocurrencies as an exciting new opportunity, especially given the recent market trends.

BBVA's new recommendation represents a more strategic and organized policy compared to its previous demand-based approach to crypto investing, which began in 2021. The bank is now at the forefront of guiding clients into the emerging crypto space. This move by BBVA could encourage other banks to reconsider their stance on cryptocurrencies, as digital finance continues to gain traction. BBVA's actions demonstrate a confident and strategic approach to integrating crypto into traditional banking practices.